If the AS curve is vertical, then it follows that
A) Real GDP changes will always arise from the supply side of the economy.
B) Real GDP changes will always arise from the demand side of the economy.
C) Price level changes will always arise from the demand side of the economy.
D) Price level changes will always arise from the supply side of the economy.
E) a and c
E
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The table above gives the values of different expenditures in the United States during 1999. Answer the following questions about the United States
a. What was the value of net exports of goods and services in 1999? b. What was (nominal) GDP equal to in 1999? c. What was the (nominal) value of total production equal to in 1999?
If supply is perfectly elastic, the supply curve is
a. vertical b. horizontal c. any straight-line supply curve d. any supply curve intersecting a perfectly elastic demand curve e. any supply curve intersecting a demand curve which is unit elastic
An impartial observer who attempts to settle disagreements by listening to both sides separately and making suggestions is called a(n)
a. collective bargaining agent b. arbitrageur c. mediator d. binding negotiator e. judge
Each point on a production possibilities frontier represents an efficient allocation of resources in an economy at one point in time.
Answer the following statement true (T) or false (F)